Quick answer
A home appraisal is an independent, professional opinion of a property’s market value. A licensed or certified appraiser inspects the home, then compares it with similar homes that sold nearby to arrive at a dollar figure the market supports.
Lenders require one on most purchase and refinance loans to confirm the home is worth at least what they are lending against it. The buyer usually pays the fee, the lender orders the appraisal, and you are entitled to a copy before closing.
Rules on this page were verified in . Agency guidelines and lender requirements can change. See the CFPB’s guide to your appraisal rights.
At a glance: the appraisal
- Why it’s required: The lender needs proof the home is worth at least the loan amount
- What’s checked: Size, condition, features, location and recent nearby sales
- Cost: Commonly $300 to $800 for a single-family home; usually paid by the buyer
- Timeline: Usually 5–7 business days after the visit in Middle Tennessee; plan on 1–2 weeks from order, longer for large or rural homes
- Low value: Renegotiate, cover the gap, request a reconsideration, or use your contingency
- Who picks the appraiser: The lender or VA, never the buyer, seller or agents
Why do lenders require a home appraisal?
The home is the collateral for your mortgage. Before committing hundreds of thousands of dollars, the lender needs independent confirmation that the property is worth what it is lending. Most loans are sized on the lower of the purchase price or the appraised value, so the appraisal directly sets how much you can borrow.
| Party | What the appraisal does for them |
|---|---|
| Lender | Confirms the loan amount does not exceed the home’s market value |
| Buyer | Gives an independent check on the price before you commit |
| Seller | Tests whether the agreed price reflects recent sales |
| Refinancer | Establishes current equity, which affects eligibility, loan-to-value and mortgage insurance |
The requirement applies across conventional, FHA, VA and USDA loans, but each program adds its own rules:
| Loan type | Who selects the appraiser | What else the appraisal checks | If the value comes in low |
|---|---|---|---|
| Conventional | The lender or its appraisal management company | Market value under Fannie Mae or Freddie Mac standards | Your contract’s appraisal contingency, if it has one |
| FHA | The lender, from HUD’s FHA appraiser roster | HUD’s minimum property requirements for safety, security and soundness (Handbook 4000.1) | The FHA amendatory clause lets you decline to buy above the appraised value |
| VA | VA itself, by rotation from its fee-appraiser panel | VA minimum property requirements | The VA escape clause lets you decline to buy above the appraised value |
| USDA | The lender or its appraisal management company | USDA Rural Development property standards | Your contract’s appraisal contingency, if it has one |
Program rules are subject to HUD, VA, USDA, Fannie Mae, Freddie Mac and lender guidelines and may change.
What do appraisers look for?
Appraisers are not home inspectors. They are not hunting for every crack or leaky faucet; their job is market value, so they focus on what a typical buyer would pay for. A separate home inspection, which you choose and pay for, is still the way to learn the condition of the roof, systems and structure in detail.
Interior and exterior condition
- Square footage and floor plan
- Number of bedrooms and bathrooms
- Condition of walls, flooring, windows and doors
- Visible condition of the roof and foundation
- Garage, deck, porch and permanent features such as pools and built-in appliances
Location factors
- Proximity to schools, employers and amenities
- Zoning and neighborhood trends
- Comparable recent sales, ideally close by; rural Tennessee properties often need comparables from farther away
The sales comparison approach
The most common method for a home is the sales comparison approach. The appraiser picks several recently sold homes (“comps”) similar in size, condition and location, then adjusts each one in dollar terms for differences from your home, such as an extra bathroom or a smaller lot, to reach a final opinion of value. Appraisers must follow the Uniform Standards of Professional Appraisal Practice (USPAP), published by The Appraisal Foundation, and in Tennessee they are licensed or certified through the Tennessee Real Estate Appraiser Commission.
How much does a home appraisal cost, and who pays?
For a standard single-family home, appraisal fees commonly run about $300 to $800, depending on the property’s size, complexity and location. Larger, rural or unusual homes can cost more. I’ve seen fees reach $1,000. The exact fee is disclosed on your Loan Estimate, under the services you cannot shop for.
Who pays: in almost all cases, the buyer or borrower. It is either collected upfront, after you decide to proceed with the loan, or paid as part of closing costs, depending on the lender.
Even though you pay the fee, you are not the appraiser’s client; the lender is. You still have rights to the result: under the Equal Credit Opportunity Act’s valuation rule (Regulation B §1002.14), the lender must give you a free copy of every appraisal on a first-lien loan promptly after it is completed, and no later than three business days before closing, unless you waive that timing.
What happens if the appraisal comes in low?
A low appraisal is stressful, but it does not automatically end the deal. When the value comes in below the contract price, you have four main paths:
- Renegotiate with the seller. Ask the seller to lower the price to the appraised value, or to meet you partway.
- Cover the appraisal gap in cash. Because the loan is based on the lower appraised value, you pay the difference between that value and the price out of pocket, on top of your planned down payment.
- Request a reconsideration of value (ROV). If the appraiser missed relevant comparable sales or got facts wrong, your lender can submit a formal request for review. It does not guarantee a higher value.
- Walk away. If your contract has an appraisal contingency, or you are using an FHA or VA loan with its amendatory or escape clause, a low appraisal can let you cancel. Whether your earnest money is refunded depends on the contract terms and deadlines.
Here is how a $10,000 gap changes the cash needed on an illustrative $350,000 Robertson County purchase that appraises at $340,000:
| Loan type (minimum down) | Cash down if it appraises at $350,000 | Cash down if it appraises at $340,000 | Extra cash needed |
|---|---|---|---|
| FHA (3.5%) | $12,250 | $21,900 | $9,650 |
| Conventional (5%) | $17,500 | $27,000 | $9,500 |
| VA (0%) | $0 | $10,000 | $10,000 |
Down payment only; excludes closing costs, prepaid items and financed fees such as FHA upfront mortgage insurance or the VA funding fee. Illustrative example only. Actual interest rates and APRs vary based on loan program, borrower qualifications, property, market conditions and other factors.
The key takeaway: a low appraisal is a negotiation point, not a dead end. A loan officer can show you the exact cash difference under each option and help you respond before your contract deadlines.
How do you challenge a low appraisal?
Through your lender, with a reconsideration of value. You cannot contact the appraiser directly. A useful request is specific and factual:
- Factual errors in the report, such as wrong square footage, bedroom count or missed improvements
- Up to several better comparable sales the appraiser did not use, with addresses, sale dates and prices (your real estate agent can usually pull these)
- Any concern that the valuation was affected by bias, which lenders must review
FHA lenders must offer a borrower-initiated ROV process under HUD Mortgagee Letter 2024-07, and Fannie Mae, Freddie Mac and VA have their own review processes. On VA loans, VA’s “Tidewater” process can also alert the lender before a low value is final so more sales data can be submitted. A review can raise the value, leave it unchanged, or, rarely, lower it. Underwriting and agency review times are not guaranteed.
How long does the appraisal process take?
- The site visit: the appraiser typically spends one to two hours at the property, and needs access to the interior for a full appraisal.
- The written report: typical recent timelines have been approximately five to seven business days after the visit, longer for complex or rural properties and in busy seasons.
Plan for roughly one to two weeks from the time the appraisal is ordered to the finished report. Appraisal and underwriting times are not guaranteed, so make sure your contract’s appraisal and financing deadlines leave room. At Valor Mortgage we track every order and keep you and your agent updated so the closing date stays on schedule.
Can I choose my own appraiser?
No. Federal appraisal-independence rules (Regulation Z §1026.42) prohibit anyone from coercing or influencing an appraiser, and agency guidelines keep borrowers, sellers and real estate agents out of appraiser selection. The lender orders the appraisal from its approved panel or through an appraisal management company (AMC), a third-party firm that assigns and oversees appraisers. On VA loans, VA assigns the appraiser itself.
What you can do: review your copy of the report, and if it contains factual errors or missed comparable sales, ask your lender for a reconsideration of value.
Can a mortgage close without an appraisal?
Sometimes. On some conventional purchase and refinance loans, Fannie Mae’s automated underwriting may offer value acceptance (formerly called an appraisal waiver), and Freddie Mac has a similar option, usually when a prior appraisal of the same property is on file. FHA streamline refinances and VA interest rate reduction refinance loans (IRRRLs) generally do not require a new appraisal. Eligibility is decided by the agency’s system and the lender, not the borrower, and even when a waiver is offered a borrower can still choose to get an appraisal for peace of mind.
Home appraisal FAQ
Is a home appraisal the same as a home inspection?
No. An appraisal estimates market value for the lender and notes only obvious condition issues. A home inspection is a detailed look at the roof, structure, plumbing, electrical and mechanical systems, ordered and paid for by the buyer. Lenders require the appraisal; the inspection is optional but strongly recommended before your inspection deadline.
Can I be at the home during the appraisal?
Yes, and on a purchase the seller or listing agent usually provides access. You cannot steer the appraiser’s value, but you or your agent may hand over factual information, such as a list of recent upgrades with dates and costs, permits, or a survey. On a refinance, have the home clean and every room, the attic and the crawlspace accessible.
Do I get a copy of my appraisal?
Yes. For a first-lien mortgage, federal rules require the lender to give you a free copy of each appraisal promptly after it is completed and no later than three business days before closing, unless you waive that timing. You receive it even if your loan is denied or you withdraw.
Why does the appraisal matter on a refinance?
It sets your loan-to-value ratio. A higher value means more equity, which can affect whether you qualify, how much cash you can take out, and whether you need mortgage insurance. A lower value can limit a cash-out amount or change which program fits.
How long does an appraisal take in Middle Tennessee?
Usually five to seven business days after the appraiser’s visit. Large, rural or unusual homes can take two weeks or more, and fees can reach about $1,000.
What if I offered over asking in a competitive market?
Plan for the possibility of a gap. Some buyers include an appraisal-gap clause, agreeing in advance to cover a set dollar amount if the value comes in low. Talk to your agent and loan officer before writing that offer so you know how much extra cash you could need.
Where these rules come from
| Rule | Source | As of |
|---|---|---|
| Your right to a copy of the appraisal | CFPB, Ask CFPB · Regulation B §1002.14 | Retrieved Oct 25, 2026 |
| Appraiser independence | Regulation Z §1026.42 | Retrieved Oct 25, 2026 |
| Appraisal standards | The Appraisal Foundation, USPAP | 2024 edition |
| FHA property requirements, amendatory clause | HUD Single Family Housing Policy Handbook 4000.1 | Current handbook |
| FHA reconsideration of value | HUD Mortgagee Letter 2024-07 | Case numbers on or after Oct 31, 2024 |
| VA appraisals | VA Home Loans, Appraisers | Retrieved Oct 25, 2026 |
| Conventional value acceptance | Fannie Mae Selling Guide B4-1.4-10 | Retrieved Oct 25, 2026 |
| Where the fee appears | CFPB, Loan Estimate explainer | Retrieved Oct 25, 2026 |
Related guides
- Conventional, FHA, VA and USDA loan program pages.
- Step-by-step guide to buying a home, from pre-approval to closing.
- Closing costs vs. down payments.
- Tennessee first-time homebuyer programs.
- Refinancing with Valor Mortgage.
- Robertson County mortgage guide.
- About Christopher Armantrout, the licensed originator who wrote this page.
Have questions about your appraisal? Talk to Valor Mortgage.
Appraisals are one of the most misunderstood steps in the mortgage process, and the anxiety around them is real. Whether you are buying your first home in Springfield, refinancing in the Nashville area, or working through VA or FHA appraisal requirements anywhere in Tennessee, Valor Mortgage will walk you through it before the appraiser ever arrives.
Call me at (615) 671-9178. That’s the fastest way to get a straight answer on what you’d qualify for and what your appraisal means for your loan.
If it’s after hours, grab a time on my calendar. Pick a slot that works and I’ll call you then.
If your life is too chaotic for a phone call right now — I understand — start an application and I’ll review it and reach out with a plan.
Valor Mortgage, LLC · Christopher Armantrout, Mortgage Loan Originator, NMLS #1210804 · Valor Mortgage, LLC is powered by Encore Lending Group, LLC, NMLS #1249911 · Licensed in Tennessee · Equal Housing Opportunity
724 S Main St, Springfield, TN 37172 · (615) 671-9178 · christopher@valor.mortgage · NMLS Consumer Access
The dollar figures on this page are illustrative examples for general information only and are not an offer, a rate quote, or a commitment to lend. Actual interest rates and APRs vary based on loan program, borrower qualifications, property, market conditions and other factors. Program fees, limits and terms are set by the agencies named above and change without notice; all loans are subject to credit approval, income verification and property appraisal. Not all applicants will qualify.